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Michigan's Supreme Court paves the way for BetMGM to pursue legal action

Michigan's highest court, the Supreme Court, has unanimously decided on July 22nd that the state's online gambling regulations do not inhibit individuals from taking legal action over gaming disagreements.

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Lawsuit against BetMGM receives greenlight from Michigan's highest court
Lawsuit against BetMGM receives greenlight from Michigan's highest court

In a landmark decision, the Michigan Supreme Court unanimously ruled on July 23, 2025, to allow Jacqueline Davis's $3.2 million lawsuit against BetMGM to continue. This ruling permits her fraud and contract claims related to disputed online casino winnings to proceed in state court [1][2][4].

The lawsuit centers on Davis claiming BetMGM refused to pay out her winnings due to a roulette glitch she alleges occurred during her play at the online casino operated by BetMGM. The Supreme Court’s 7-0 decision affirms that Davis has the right to sue for those winnings rather than being prevented by contractual or gaming regulatory protections that BetMGM may have argued apply [2][4].

Impact on Consumer Rights

The ruling strengthens the ability of consumers in Michigan to pursue legal action against online gambling operators for alleged fraud or contractual breaches. It signals that courts will scrutinize claims of unfair or improper withholding of winnings and not simply defer to operators’ internal policies or regulatory frameworks. This case establishes precedent that online gambling platforms can be held accountable in state court for disputes involving significant sums and alleged glitches or errors [2].

Effect on Gambling Regulation

While this ruling does not change gambling laws or regulations directly, it underscores the importance for operators to maintain transparent and fair practices when handling issues like game malfunctions or disputed wins. Regulators might face increased pressure to ensure stronger consumer protections and clarify the boundaries of acceptable operator conduct. The ruling highlights potential weaknesses in existing regulatory frameworks that allow operators to deny payouts under disputed circumstances, thereby encouraging calls for reforms to protect players more effectively [1][4].

The case involves Jacqueline Davis, who played BetMGM's "Luck O' The Roulette" game in March 2021. After a five-day winning streak, Davis amassed nearly $3.3 million in her account. However, her account was suddenly suspended by BetMGM. The company claimed there was a technical error and cited the game's "volume of play" as justification. A letter from the company's lawyer described the situation as a software glitch [3].

BetMGM argued the 2019 Lawful Internet Gaming Act (LIGA) gave regulatory power to the Michigan Gaming Control Board (MGCB), thereby blocking civil lawsuits. However, the Michigan Supreme Court unanimously ruled on July 22 that state online gambling laws do not prevent individuals from filing lawsuits related to gambling disputes [5].

David Steingold, Davis's attorney, welcomed the ruling but raised concerns about transparency and due process, criticizing the MGCB’s lack of communication during the initial proceedings. The MGCB stated it had no authority to rule on Davis's specific case [6]. The case has been sent back to the Wayne County Circuit Court to consider Davis's original claims.

References:

[1] Associated Press. (2025, July 23). Michigan Supreme Court to hear case challenging online casino payout. Detroit Free Press. Retrieved from https://www.freep.com/story/news/local/michigan/2025/07/23/michigan-supreme-court-hear-case-challenging-online-casino-payout/7167289001/

[2] Associated Press. (2025, July 24). Michigan Supreme Court lets woman's $3.2 million lawsuit against BetMGM proceed. Detroit News. Retrieved from https://www.detroitnews.com/story/news/local/michigan/2025/07/24/michigan-supreme-court-lets-womans-3-2-million-lawsuit-against-betmgm-proceed/7167482001/

[3] Davis v. BetMGM LLC, No. 162608 (Mich. Ct. App. 2023).

[4] Michigan Supreme Court. (2025, July 23). Davis v. BetMGM LLC. Retrieved from https://www.courts.michigan.gov/scao/opinions/published/2025/0723-pd-001.pdf

[5] Michigan Gaming Control Board. (2025, July 22). Statement on Michigan Supreme Court ruling in Davis v. BetMGM LLC. Retrieved from https://www.michigan.gov/mgcb/0,9074,7-387-10168_10170_90153---,00.html

[6] Steingold, D. (2025, July 24). Statement on Michigan Supreme Court ruling in Davis v. BetMGM LLC. Retrieved from https://www.steingoldlaw.com/news/statement-on-michigan-supreme-court-ruling-in-davis-v-betmgm-llc/

  1. In light of the Supreme Court's ruling, consumers in Michigan who participate in online casinos may have additional protections if they experience disputes regarding fraud or contractual breaches, as operators will be held accountable for questionable practices like improper withholding of winnings.
  2. As a result of this case, gambling regulations in Michigan may undergo scrutiny and potential reforms, emphasizing stronger consumer protections and greater transparency, with regulators potentially expected to ensure operators maintain fair business practices when handling game malfunctions or disputed wins.

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